Trump says trade talks 'complicated' but Canada will be 'very happy' with eventual deal

October 7, 2025

President Trump described US-Canada trade negotiations as "complicated" during a White House meeting with Canadian Prime Minister Mark Carney, noting that both countries compete in industries like automobiles and steel. Despite imposing significant tariffs on Canadian imports, including 50% on metals and 25% on automobiles, Trump maintained a cordial tone, expressing "love" for Canada while acknowledging the "natural business conflict" between the neighboring nations. Carney expressed confidence in eventually reaching "the right deal" with the US, which purchases 75% of Canada's exports, even as negotiations have extended beyond an August deadline.

Who is affected

Canadian exporters and businesses subject to US tariffs
US and Canadian car companies and steel producers
Canadian citizens whose economy depends on US trade (75% of Canadian goods are sold to the US)
American consumers of Canadian goods
G7 nations (with Canada being singled out as the only one without a trade deal)

What action is being taken

Trade negotiations are ongoing between the US and Canada
The US maintains 35% levies on Canadian imports (with USMCA exemptions)
The US imposes sector-specific tariffs including 50% on metals and 25% on automobiles
Carney is actively working to strengthen economic ties with the US through diplomatic meetings

Why it matters

The US-Canada trade relationship affects 75% of Canada's exports
Tariffs impact key industries including automobiles and steel
The negotiations will determine economic conditions for businesses and consumers in both countries
The outcome will influence the broader relationship between two historically close allies
Canada's status as the only G7 nation without a trade deal with Trump places it at a potential economic disadvantage

What's next

No explicit next steps stated in the article

Read full article from source: BBC